@RobertB4444 thank you!
Using hypothetical numbers earlier does not add up. Now using real numbers. Sorry a little busy with numbers. Could you help clarify a couple more questions?
Relinquished (27.5 year depreciation schedule):
- 16,173 = Depreciation Taken
- 1.04 = Depreciation Time used = Depreciation Taken / (Building Basis / 27.5) = 16,173/(426,990/27.5)
- 433,752 = Adjusted Basis = Building Basis + Land Basis - Depreciation Taken = 426,990 + 22,935 -16,173
- 1,111,572 = Net Sale Price = Gross Sale Price - Selling Costs = 1,185,000 - 73,428
- 434,329 = Realized Gain = Net Sale Price - Adjusted Basis = 1,111,572 - 433,752
- 243,791 = Mortgage Paid off
- 867,781 = Equity rolled into exchange = Net Sale Price - Mortgage Paid off = 1,111,572
Replacement (39 year depreciation schedule):
- 1,207,195 = FMV Purchase = Building basis+ Land basis = 1,184,260 + 22,935
- 273,264 = Loan Assumed
- 933,931 = Equity invested = FMV Purchase - Loan Assumed = 1,207,195 - 273,264
Carryover Depreciation Calculation:
- 410,817 = Carryover Basis = Building Basis - Deprecation Taken = 426,990 - 16,173
- 26.46 = Remaining Depreciation Time = 27.5 - Depreciation Time Used = 27.5 -1.04 = 26.46 year
- 15,525 = Carryover Depreciation = Carryover Basis / Remaining Remaining Depreciation Time = 410,817 / 26.46
Excess Depreciation Calculation:
- 66,150 = Excess Basis = Equity invested - Equity rolled into exchange = 933,931 - 867,781
- 1.8999% = %Replacement Land = (Land basis / FMV Purchase) * 100 = (22,935 / 1,207,195) * 100
- 1,257 = Excess Land Basis = %Replacement Land * Excess Basis = 1.8999% * 66,150
- 64,893 = Excess Building Basis = Excess Basis - Excess Land Basis = 66,150 - 1,257
- 1,664 = Excess Depreciation = Excess Building Basis / 39 = 64,893 / 39
Q10) Is Adjusted Basis above correct about including the Land Basis?
Q11) 100% Realized Gain is deferred since Equity invested > Equity rolled into exchange, correct?
Q12) Is the Carryover depreciation equation correct by using the Remaining Depreciation Time (26.46)? The Carryover Depreciation seems to match with the origin depreciation per year (426,990/27.5=15,525).
Q13) Is the calculation for Excess Depreciation correct?
Q14) Given there are 2 depreciations (1- Carryover deprecation and 2-Excess depreciation), Am I create 2 properties in TT premier, which in term create 2 schE? or some how create 1 property with 2 independent asset depreciations?
